Important Keyword: Notification no. 20/2023 – central tax (rate), imitation zari GST refund, polyester film yarn GST, gst notification october 2023, GST amendment 2023, input tax credit zari thread,
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[F. No. CBIC-190354/195/2023-TO(TRU-II)-CBEC]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(Department of Revenue)
New Delhi, the 19th October, 2023
Notification No. 20/2023 - Central Tax (Rate): Seeks to amend Notification No 05/2017- Central Tax (Rate) dated 28.06.2017.
[TO BE PUBLISHED IN PART II, SECTION 3, SUB-SECTION (i) OF THE GAZETTE OF INDIA, EXTRAORDINARY]
G.S.R. (E).- In exercise of the powers conferred by clause (ii) of the proviso to sub-section (3) of section 54 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 5/2017-Central Tax (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 677(E), dated the 28th June, 2017, namely :- In the said notification, in the TABLE, after S. No. 6A and the entries relating thereto, following S.No. and the entries shall be inserted, namely:-
| (1) | (2) | (3) |
| 6AA | 5605 | Imitation zari thread or yarn made out of Metallised polyester film /plastic film; Explanation: This entry shall apply for refund of input tax credit only on polyester film /plastic film”; |
2. This notification shall come into force with effect from the 20th day of October, 2023.
Vikram Wanere
Under Secretary
Note: - The principal notification No.5/2017-Central Tax (Rate), dated the 28th day of June, 2017, was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 677(E)., dated the 28th day of June, 2017, and was last amended by notification No. 9/2022 – Central Tax (Rate), dated the 13th July, 2022, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 559(E)., dated the 13th July, 2022.
📚 Frequently Asked Questions (FAQs): Notification No. 20/2023 – Central Tax (Rate)
Q1: What is the main objective of Notification No. 20/2023 – Central Tax (Rate)?
Answer:
The primary goal of this notification is to amend Notification No. 05/2017-Central Tax (Rate) by adding a new entry (6AA) in the refund table. It specifies that imitation zari thread or yarn made from metallised polyester/plastic film qualifies for input tax credit refund, but only for the polyester/plastic film component.
Q2: From which date is Notification No. 20/2023 effective?
Answer:
The notification comes into effect from 20th October 2023.
Q3: What does entry 6AA include as per the amendment?
Answer:
Entry 6AA includes “Imitation zari thread or yarn made out of metallised polyester film/plastic film”. Refund eligibility is limited to the polyester/plastic film input material only.
Q4: Can businesses claim ITC on labour or other non-film inputs used in imitation zari production?
Answer:
No, the refund of input tax credit is restricted specifically to polyester film/plastic film inputs. Labour, other materials, and overheads are excluded.
Q5: How does this notification benefit imitation zari manufacturers?
Answer:
It clarifies their entitlement to GST input tax credit refund for raw materials like polyester film, which reduces ambiguity and enhances compliance.
Q6: Is this notification applicable across all states?
Answer:
Yes, being a central tax notification, it applies uniformly across India to all eligible registered taxpayers dealing with imitation zari products.
Q7: What should manufacturers ensure while filing for ITC refund?
Answer:
Manufacturers should maintain clear documentation of input purchases specifically related to metallised polyester/plastic film and ensure GST paid is reflected properly in GSTR filings.
Q8: Where can I get expert help on GST refund procedures?
Answer:
You can connect with trusted GST Professionals through Finodha:
🌐 Expert Guidance: GST Professional at Finodha.in
📄 For GST Refunds: GST Return Filing
📝 For New Registrations: Online GST Registration
🔎 For Compliance Services: GST Compliance Help
📢 Additional Context & Tips
- 🎯 This move helps reduce costs for zari yarn exporters and ensures clarity on refund eligibility under Section 54(3)(ii) of the CGST Act.
- 🧶 This is especially important for MSMEs engaged in traditional thread manufacturing or decorative yarn production.
- 🧾 For simplified ITR filing or to set up a textile unit, visit: Setup Business with Finodha
📌 Summary
Notification No. 20/2023 – Central Tax (Rate) provides a focused refund benefit for specific input materials used in imitation zari thread/yarn manufacturing. It narrows refund eligibility to metallised polyester or plastic film, ensuring targeted tax relief.
Download PDF: Notification No. 20/2023 – Central Tax (Rate)
More Information: https://taxinformation.cbic.gov.in/
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